An Enterprise Asset Management System

1. An Enterprise Asset Management System By: Paul B. Elkins Georgetown Utility Systems What's all the Buzz about

2. How do your track your maintenance now?? Some of us use an Big Chief Tablet or something similar to document our maintenance activities. But what if these written records are lost or illegible?

3. How do your track your maintenance now?? Others may rely on our staffs memories to document what, where and how our maintenance is performed. But what if they are unavailable when key decisions or questions arise?

4. You need a Maintenance Management System

5. Maintenance Management Systems Basically there are two types: • Computerized Maintenance Management Systems (CMMS) • Enterprise Asset Management Systems (EAMS) Both systems are similar in operational characteristics and both provide a realistic way to reduce expenses and increase revenues. These systems provide for and assist with:

6. Maintenance Management Systems • Maintaining an adequate inventory level of repair and service parts based on forecasted equipment usage. • They can help prevent already limited funds from being over-allocated just to achieve a false sense of security.

7. Maintenance Management Systems • They can provide for an effective preventive maintenance program to improve equipment utilization and availability thereby limiting the replacement of expensive equipment when finances restrict. • They provide companies an operational savings that are real and tangible.

8. Maintenance Management Systems • They can provide for a return on investment (ROI) that is often quickly achieved and easily quantified.

9. Comparing EAMS and CMMS Many regard EAMS as a CMMS on steroids. A CMMS typically deals strictly within the confines of the work order and the preventive maintenance activity. Both systems include:

10. Comparing EAMS and CMMS • Scheduling preventive maintenance based on triggers • Ensure probability-based availability repair and spare parts • Serial number and warranty tracking

11. Comparing EAMS and CMMS • Suggesting and originating the purchase of needed repair parts • Ensuring manpower availability with skills and training to perform activity • Maintaining an asset registry and repair parts database

12. Comparing EAMS and CMMS • Tracking costs of maintaining individual pieces of equipment • Recording unexpected events for further analysis • Statistical analysis of equipment

13. Comparing EAMS and CMMS • Providing a variety of reports, such as: • equipment utilization • equipment downtime • MTBF—equipment mean time between failure • MTTR—equipment mean time to repair

14. Comparing EAMS and CMMS • Both types of systems usually include purchasing, procurement, inventory management, as well as equipment, parts, and asset tracking. They also can schedule preventive maintenance and manage these activities as well as unplanned maintenance. These products are designed to plan production work around any maintenance issues to optimize production. • EAM systems encompass these functions and most often extend their capabilities, with many features that can provide value added functionality, and savings to your company. They have features such as financial, accounting and human resource management capabilities that are typically integrated with an EAM that normally are not with a CMMS.

15. EAM Systems Offer More EAM systems are also designed to scale to larger numbers of users and facilitate running at multiple sites from a single central database, thereby catering better to entire enterprises, rather than departmental or individual location needs.

16. EAM Systems Offer More • EAM systems offer a more robust methodology for documenting equipment and their parts to include warranties, schematics, and computer aided design drawings.

17. EAM Systems Offer More • EAM systems, once your data is entered into the common database, it immediately becomes available to the other modules. As a result, information can be recycled, remain consistent, and updated, and never has to be entered twice.

18. EAM Systems Offer More • EAM systems provide better and more conclusive analysis of the maintenance, repairsand material replacement alternatives.

19. EAM Systems Offer More • EAM systems can be used to provide functionality to calculate the cost of failure based on the downtime costs multiplied by the downtime plus any additional repair.

20. EAM Systems Offer More • EAM systems also provide an additional analysis with cost prevention, which is based on the cost of the maintenance service, including labor and parts, over the same period of time as the mean time between failures.

21. Questions in Selecting • Is having a system available to your company to perform financial analysis on equipment based on historical trends and a preventive maintenance schedule? • Is maintaining equipment costing your company more than the value it is providing?

22. Questions in Selecting With a EAM System you will have the ability to consider the financial impacts of a major system equipment overhaul using interfaces with fixed asset modules for determining if the activity will significantly extend the useful life and/or generate depreciable expense to warrant the activity. A major differentiator of EAM software is the reliability-centered maintenance concept.

24. CMMS Systems A CMMS focus is on the work order history for maintenance and operation of equipment.

25. EAM Systems Enterprise – Is management across multiple departments, organizations, locations and business units. Asset Management– Is the whole life optimal management of physical assets to maximize their value, life expectancy and performance.

26. EAM Systems A EAM Systems focus on the entire equipment life cycle from purchase and installation to decommissioning and removal/replacement.

27. Mission of a EAM System To create a level of management of assets across multiple business units, where organizations can improve equipment utilization and performance for the reduction of capital and operational costs for providing the extension of life and to improve the return on investment for assets.

28. Lifecycle Asset Management • Management of Assets across entire organization • Maximize infrastructure useful life and return on assets

29. GIS Centric EAM

30. What is an Asset ?

31. EAM Structural Relationships EAM systems allow you to execute work orders for preventive or scheduled maintenance of a piece of equipment; document all activities performed by action types including parts replaced, labor associated and types of maintenance performed to keep equipment in good order. EAM system stores this information for equipment within the equipment records of a defined hierarchy structure for systematic rollup of all actions.

32. EAM Structural Relationships Just like a family tree, a EAM System is set up through a hierarchical structure of organizations, systems, positions and assets. In the hierarchy structure the costs of parts, labor, equipment and tools are tracked to a position within the hierarchy for installations, replacement and de-commissioning of assets.

33. EAM Structural Relationships The hierarchy structure allows the tracking of asset history at the assigned position with ability of cost rollup all the way to the top of the organization. Equipment status’s and performance history can be monitored, and can even be transferred within or between departments in the systems hierarchy. This approach allows users and management to evaluate condition of assets and life cost. Through performance tracking and root failure analysis, changes to equipment type or equipment maintenance strategy can be applied to equipment with repeat failure or reoccurring needs for additional maintenance.

34. Hierarchical Relationships • In addition, EAM users will need to: • Develop organizational structure • Develop systematic plan for cost roll up

35. EAM Systems assist with Service Lifecycle Management • Minimize total cost of assets through use of life cycle cost analysis • Minimize expensive replacement of assets where regular maintenance would have extended life and increased utility revenues • Decreasing customer downtime from premature failures and overtime labor cost for restoration of service following failures • Minimize customer losses in production, unfavorable publicity and increase retention

36. EAM Systems assist with • Management of inventory, parts and labor allocations for preventive maintenance. • Providing risk registers and work order planning/scheduling. • Systematic methods of problem identification, root cause analysis and continuous improvement of equipment utilized on utility systems.

37. Goal of Implementing a EAM System EAM provides a holistic view of an organization's asset base, enabling managers to control and optimize their utility operations and choices of equipment used for quality and efficiency. It also provides platform for connecting people, processes, assets and industry-based knowledge.

38. Maintenance Strategy Types There are four basic types of maintenance procedures. Each types can be used in maintaining power distribution equipment. The challenge is to optimize the balance between the types for maximum reliability.

39. Maintenance Strategy Types Corrective Maintenance – is maintenance that is carried out following detection of an anomaly and aimed at restoring normal operating conditions. The belief here is costs sustained for the downtime and repair are lower than the investment of a maintenance program.

40. Maintenance Strategy Types Preventive Maintenance – is maintenance carried out at pre-determined intervals or according to prescribed criteria, aimed at reducing the failure risk or performance degradation of the equipment.

41. Maintenance Strategy Types Risk-based Maintenance – is maintenance carried out by integrating analysis, measurement and periodic test activities to standard preventive maintenance. The aim is to perform the asset condition and risk assessment to define the appropriate maintenance program.

42. Maintenance Strategy Types Condition-based Maintenance – is maintenance based on the equipment's performance through monitoring and the control of the corrective actions taken. The equipment is continuously assessed by comparing working device parameters and average values and performance. Maintenance is performed when indicators give the signals that the equipment is deteriorating and the failure probability is increasing.

43. Additional things to consider When implementing a EAM system, considerations for integrating with other systems to reduce manual transfers of information and procedures. Some to consider are:

44. GIS Systems Normally the base of EAM systems is a GIS system that serves as a spatial reference location map. These spatial systems allow for graphic representation of your assets, ease of work order creation at the levels desired and ability through natural integration to push features of new or edited asset information into your EAM system.

45. Customer Information Systems Generally work orders for new or changes to a utilities customers begin with their CIS. In most cases it is official record in most utilities for the necessary customer information such as address, name, contact information, meter identification and previous read information. In addition to this information some utilities have meter data management systems and AMI metering information that may need to be conveyed to the work orders.

46. Purchasing and Warehouse Work orders generally require parts, and most utilities have systems in place to handle the purchasing, stocking and issuing of parts. The ability to integrate these systems gives EAM users the ability to reserve or pre-order parts for scheduled work orders on a just in time basis to keep part quantities and purchase cost at a minimum. Some work orders may require parts that are long lead or require special order processes. The ability to integrate the two systems allows users to schedule work orders in accordance with availability and issuance of parts for a positive work flow.

47. Other integrations to consider Other integrations to consider depending on your utility include: • OMS Systems – for potential work order creation and processing as OMS predicts outages from customer calls or AMI reporting. • Design Systems – for interaction of designed assets into your EAM system for tracking of new installation work orders

48. Desired work flow • Define your current work flow processes and identify desired changes to these processes from manual to manual or manual to automated. • Define compatibility restrictions between proposed integrations of systems like the versions of software's. • Even if you desire to keep some work processes manual, the EAM implementation may alter these existing manual processes and you need to identify all aspects of these too.

49. Set-up needs for a EAM • Tables containing employees labor rates • Trade classes and categories • User restrictions • Equipment classes and categories • Adaptability of hierarchy for future • Work order screen set up and process flow • Preventive maintenance processes and frequency • System accessibility and mobility • Change management plan for deployment • Communications plan for deployment

50. Choosing Your EAM system • From the integrations side consider all systems impacted. Remember these integrations are not trivial in design or construction. One system has to be official location of data and other systems use the data. So determining exact locations for official records is also a requirement. You need to determine frequency of data syncing and what to do if they go out of sync. • Review and identify the roles and responsibilities of both users and management